GOP Should Be Leader In Fight Against Fraud

If the months since President Obama's reelection have proved anything, it is simply that there is no shortage of opinions about the preferred direction of the Republican Party.

One particularly insightful thought though came from Louisiana Governor Bobby Jindal immediately afterwards.

He said that the GOP's perceived coziness with corrupt Big Business and Wall Street is part of its image problem. It is true that Republicans need to change perceptions about what and for whom the Party stands.

And one way to facilitate that is by taking a more proactive posture towards combating commercial fraud — particularly though free market means — and touting other Republicans' accomplishments in that respect.

Historically, Republicans have spearheaded fraud-fighting efforts, including creating incentives for private whistle-blowers to report fraud against the government and to benefit monetarily as a result.

The False Claims Act, which was passed during the Civil War to protect the Union Army from unscrupulous defense contractors, allows private citizens to sue on the government's behalf and keep a significant portion of the funds recovered.

Also known as "Lincoln's Law," the Act — which recently celebrated its 150th anniversary — is named after the Republican President who signed it.

In 1986, the False Claims Act was strengthened and revived after lying virtually dormant for decades.

Iowa Republican Senator Charles Grassley — who has been Congress's most zealous fraud fighter for decades — was the co-sponsor of the amendment; Ronald Reagan signed it into law.

Republicans have not done enough recently, however, to foster the narrative that the Party will stand up to corruption in business and protect taxpayers from commercial abuse.

It doesn't help that some Republicans in Congress and Washington lobbyist groups often associated with the political right want to water down laws that punish corruption and protect those who risk their careers to expose it.

Nobody can honestly deny, however, that commercial fraud is an enormous business and that private citizens are increasingly responsible for bringing these misdeeds to light.

Indeed, it was because of the work of a whistle-blower — Bradley Birkenfeld, who one of these authors represented — that the IRS uncovered the largest tax fraud in history, which ultimately led to billions of dollars in fines from UBS.

In other industries, particularly health care and defense, the increase in government spending has led to record amounts of fraud and waste.

The Government Accountability Office estimated that well over $100 billion was lost last year due to improper federal government payments. That is significant money even by Washington's standard.

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